It's a 2022 Stock Market Bloodbath: Why Real Estate is NEXT

The Stock Market has CRASHED in 2022 thus far. Particularly in tech stocks. Is the 2022 Housing Market NEXT?

The NASDAQ is down 12% on the year so far. Opendoor is down 36%. Tesla is down 15%. Stocks - particularly tech stocks - are crashing in 2022. And this has interesting implications for the 2022 US Housing Market.

Dotcom Bust 2.0 will have a big impact on West Coast Housing Markets, particularly those in California, Utah, Washington and Orlando. Cities in these states - such as San Jose, San Francisco, and Salt Lake City - have big exposure to the tech industry. And when tech companies crash, so to will the wealth and jobs in many of these markets.

That's bad news for 2022 Housing Markets that rely on heavily on tech wealth and employment. Bay Area Real Estate, particularly the Housing Markets in San Francisco and San Jose, are the most exposed. Venture Capital Investment in Tech Companies in these locations is far and away higher than any other area of America.

Big, gateway cities such as New York, Boston, and Los Angeles are also at risk, with a large exposure to tech. As are smaller tech hubs like Austin and Salt Lake City.

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0:00 Stock Market Bloodbath
1:03 NASDAQ / Opendoor / Tesla: 15% Crash in January
2:00 Dotcom Bust 2.0 in 2022
3:05 Housing Markets AT RISK in 2022 (Tech Exposure)
4:14 Salt Lake, Boston, Austin, Raleigh, San Jose
5:31 Speculative Markets have LOW RENTAL YIELDS
7:16 SAFER MARKETS IN BLUE (High Rental Yields)
8:38 The Opendoor Bet (500% Return!)
9:55 My NEXT Bet: Homebuilders (DR Horton & Lennar)
11:09 HIT LIKE! Support the Channel

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#MarketCrash #TechStocks #HousingBubble

[dienekes]

It's not surprising to me at all (but I am SUPER happy!) to see companies like Open Door and Zillow losing their shirts. I'm a real estate investor and one thing I've learned over the last 15 years is that house flipping is not a scalable business. The bigger the business, the more middlemen, the more profits are required to keep things going. This current bubble is great for them because once they buy a house, the appreciation is fantastic, but they aren't actually adding any value, they are just extracting that money from the economy. Once the housing market starts to crash (as it inevitably does), that business model no longer works and those companies will dry up like a well in the middle of the Sahara.

[chaseholland]

He put his money where his mouth is and made a ton. He presents factual data that everyone has access to and finds trends. One of the only youtubers that uses the scientific method to present data. No opinions, just factual data.

[BrandyJoyTV]

I'm a third generation Florida native (both sides of my family). In central florida, rent has more than doubled in less than a decade. Houses that were $90K are now $300K. Everyone is moving here. I'd love more videos on Florida. It's beyond competitive here now. The property managers are saying that most apps are coming from California and NY.

[robertlambert]

first the dotcom bubble, then the real estate bubble, cryptocurrencies and now the metaverse. there have always been waves and they will continue to be a part of the market. all the talks of an imminent crash and hoarding cash are just misguided in my opinion. same way the bubbles came did the opportunities with them. it's a lesson i learned the hard way. I have now made about $370, 000 in profits trading algorithmically from the last two quarters and even during the covid panic, i still made good. there's just no way the market will stop existing or crash so much that nobody can make a good living from it. it's a fear in our heads fed upon by the media. even during the real estate bubble, the most money was made by the smart short sellers

[stanleyjavin]

I realized that the secret to making a million is making better investment. I always tell myself you don't need that new Car or that vacation just yet and that mindset helps me make more money invest:ng. For example last year I invested 70k in blue chip stocks and crypt0 s (with the help of my advisor of course) and made about 380k, but guess what? I put it back and traded with her again and now I'm rounding up close to a million. Delayed gratification always pays off

[MarketManiaCA]

Here in Canada most rental yields are deeply negative. That just shows how screwed up our housing market is and what will happen when prices go down which they will. In places like Toronto and Vancouver those negative rental yields exceed 50% and in Calgary 30%. People are in a complete state of mania here in Canada. Hence my channel name HAHA. Great video as always.

[ricotheofficial]

I remember you talking about your bets against those companies. You were right. I really see these home builders start adding more incentives to get people to buy their homes by the end of the year due to lack of demand from people buying their overpriced mess.

[tonyb]

Love your videos and just joined your membership. My wife and I have 4 rental properties in the Bay Area and we rent our primary residence in Contra Costa County(pronounced like Bob Costa, not Costa Rica 😀) in the city of Orinda. Our landlord in China has said they will not raise our rent and we are month to month and 30% under market. It feels great to be on the sidelines and not buy into this nonsense. Meanwhile most people talk down on us for throwing our money away and renting. 🙄. Ready to buy when the time is right and I don’t think it will be in the next 18 months. I’m fine if rates triple.

[goanywhere]

It's not hard to predict something that has been happening already for a few months.

[NolanGouveia]

Stick with index funds people! Stress free investing with history on your side! Individual stocks can go up but also can definitely go way down. Invest in solid index funds/ ETFs with low fees and you will build MASSIVE wealth long term without stress or hours of research 💰

[sekousstyle]

New York is such an established market I don’t think it going to crash but it may be stagnant at best.

[ricotheofficial]

Also, I don’t see a lot of people talking about the price of lumber dropping. Notice in the Charlotte metro area the prices of newly built homes are beginning to slide back down to the low 300’s. At one time every new home community were near upper 300s/over 400s.

[sususmo]

What tech crash. I work in the semiconductor industry and it is in full production overload. I don't see it slowing down at all.

[sallysanders]

Just because a stock is going up doesn’t mean it’s a good investment, Just because a stock is going down doesn’t mean it’s a bad investment. There's more to a stock than just its price. Focus on the company, not just the stock price, true words from my F.A Rita Wildrin Mora...I'm up 280k from TSLA, SBUX, NVDA stocks and call options. This has literally been a life saver.

[dienekes]

I'm in the process of relocating from Tucson to Portland, OR. We went up during xmas to look for a house to buy and it was a HORRIBLE market. I ended up buying a house that was listed for $425k for $460k. The only good thing is that they have to put a new roof on it before NFCU will finance it (VA loan). The indicators that I'm looking at show the housing market is still appreciating like crazy there (and here in Tucson), so I'm hoping it will increase in value enough so that when the crash comes, I won't get hurt too badly.

I would SO MUCH rather buy a house with a lower price and higher interest rates! I know how to get out from under interest easily, but the price you pay is the price, so there's nothing you can do about that. I'd much rather be paying 10% or even 15% interest on a mortgage than the 2.65% that I'm locked into.

[priceless]

Real estate goes up like ladder then comes down like the elevator..

[brianld]

You da man Nick, don't forget to short Toll Brothers too

[sunshinemodels]

meanwhile.. futures popped 5% off the lows.. the illusion will perpetuated as long as possible until every last sucker has blown their proverbial financial wad..

[johnlennon]

real estate or the stock market which is the best investment?

[rajeshwaripsl]

why isn't Seattle on your chart at 3 min 30s?